3892 Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 / Notices

1Federal-State Joint Board on Universal Service,

Report and Order, 12 FCC Rcd 8776 (1997)

(Universal Service Order).

2Universal Service Order, 12 FCC Rcd at 9173–

9178, 9183–9185.

3Universal Service Order, 12 FCC Rcd at 9203,

9205.

4Universal Service Order, 12 FCC Rcd at 9200,

9202–9203.

5Changes to the Board of Directors of the National

Exchange Carrier Association, Inc., Federal-State

Joint Board on Universal Service, Report and Order

and Second Order on Reconsideration, CC Dockets

No. 97–21, 96–45, FCC 97–253 (rel. July 18, 1997)

(NECA Report and Order).

6NECA Report and Order at para. 57.

7NECA Report and Order at para. 47.

8NECA Report and Order at paras. 43–48. See

also 47 CFR 54.709(a)(2), (3), and 54.711(b).

9NECA Report and Order at para. 48.

10Proposed First Quarter Universal Service

Contribution Factors, Public Notice, DA 97–2392

(rel. Nov. 13, 1997). On November 19, 1997, AT&T

filed comments on the November 13th Public

Notice. See Letter from Rick D. Bailey, AT&T, to

Magalie Roman Salas, FCC, dated November 19,

1997.

11 47 CFR 54.709(a)(3).

12Extended Review Period for First Quarter

Universal Service Contribution Factors, Public

Notice, DA 97–2510 (rel. Nov. 26, 1997).

13Further Extension of Review Period for First

Quarter Universal Service Contribution Factors,

Public Notice, DA 97–2560 (rel. Dec. 5, 1997).

14Additional Extension of Review Period for First

Quarter Universal Service Contribution Factors,

Public Notice, DA 97–2600 (rel. Dec. 12, 1997).

15Federal-State Joint Board on Universal Service,

Third Order on Reconsideration, CC Docket 96–45,

FCC 97–411 (rel. Dec. 16, 1997).

In particular, the Commission seeks

comment on how the Commission could

continue to make the ITU notifications

while ensuring that the applicant makes

cost recovery payments directly to the

ITU.

DATES: Submit comments on or before

February 27, 1998, and reply comments

on or before March 27, 1998.

ADDRESSES: Send comments to Richard

B. Engelman, Chief Planning and

Negotiations Division, International

Bureau, Federal Communications

Commission, 2000 M Street, N.W.,

Washington, D.C. 20554.

SUPPLEMENTARY INFORMATION: During the

June 23–27, 1997 meeting of the

International Telecommunications

Union Council, the subject of ITU cost

recovery for registering and processing

satellite notifications, as well as other

products and services including

terrestrial notifications, was addressed.

The Council agreed to Resolution 1113

that adopted the principle of cost

recovery for satellite registrations and

notifications. The Federal

Communications Commission (FCC)

seeks comment on the appropriateness

and feasibility of the recovery by the

ITU of such fees and how, if adopted,

the ITU cost recovery fees should be

administered within the FCC

notification process.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

[FR Doc. 98–1835 Filed 1–26–98; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

[CC Docket No. 96–45 and 97–160; DA 97–

2623]

Universal Service

AGENCY: Federal Communications

Commission.

ACTION: Notice.

SUMMARY: In this Public Notice, released

December 16, 1997, the Common Carrier

Bureau revises and approves universal

service contribution factors for the first

quarter of 1998. These factors will be

used to calculate first quarter

contributions to universal service.

FOR FURTHER INFORMATION CONTACT:

Diane Law, Common Carrier Bureau,

Accounting and Audits Division, (202)

418–7400, or via E-mail to

‘‘dlaw@fcc.gov.’’

SUPPLEMENTARY INFORMATION: In the

Universal Service Order released on

May 8, 1997, the Commission

established new federal universal

service support mechanisms consistent

with the Communications Act of 1934,

as amended.1 The Commission required

all telecommunications carriers that

provide interstate telecommunications

services, providers of interstate

telecommunications, and payphone

service providers to contribute to the

federal universal service support

mechanisms.2 The Commission found

that contributions for the schools,

libraries, and rural health care support

mechanisms would be based on

interstate, intrastate, and international

end-user telecommunications revenues.3

The Commission also found that

contributions for the high cost, rural,

and insular and low-income support

mechanisms would be based on

interstate and international end-user

telecommunications revenues.4

On July 18, 1997, the Commission

released an Order directing the National

Exchange Carrier Association (NECA) to

create an independently functioning

not-for-profit subsidiary, the Universal

Service Administrative Company

(USAC), through which it will

administer temporarily certain aspects

of the federal universal service support

mechanisms.5 The Commission also

directed NECA to create two

independent, not-for-profit entities,

Schools and Libraries Corporation and

Rural Health Care Corporation, to

administer certain aspects of the

schools, libraries, and rural health care

support mechanisms.6 The Commission

instructed USAC, Schools and Libraries

Corporation, and Rural Health Care

Corporation to submit projections of

demand and administrative expenses for

their respective support mechanisms for

the first quarter of 1998 to the

Commission at least sixty days before

the start of the first quarter of 1998.7

USAC also was required to compile total

interstate, intrastate, and international

end-user telecommunications revenues

and submit that information to the

Commission.8 The Commission stated

that it would publish these figures and

the proposed quarterly contribution

factors in a Public Notice.9

On November 13, 1997, using the

information submitted on October 31,

1997 by the Universal Service

Administrative Company (USAC),

Schools and Libraries Corporation, and

Rural Health Care Corporation

(collectively, the administrative

corporations), the Accounting and

Audits Division (Division) announced

the proposed universal service

contribution factors for the first quarter

of 1998.10 Pursuant to the Commission’s

rules, those contribution factors would

have been deemed approved on

November 28, 1997 if the Commission

had taken no action regarding the

proposed contribution factors.11 On

November 26, 1997, however, the

Division extended the review period for

the proposed first quarter 1998

universal service contribution factors

until December 5, 1997.12 On December

5, 1997, the Division further extended

the period of time during which the

Commission could modify the proposed

universal service contribution factors for

the first quarter of 1998 until December

12, 1997.13 On December 12, 1997, the

Division extended the review period for

the proposed contribution factors until

December 16, 1997.14

On December 16, 1997, the

Commission released the Third Order

on Reconsideration in CC Docket 96–45.

In that Order, the Commission

concluded that it could reduce the

maximum amounts collected during the

first six months of 1998 for the schools

and libraries and rural health care

support mechanisms without

jeopardizing the sufficiency of the

support mechanisms.15 Consistent with

the Commission’s action on

reconsideration, in this Public Notice,

the Bureau revises the projections of

demand for the low income and rural

health care support mechanisms and
Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 / Notices 3893

15aThis $500 million projection of annual

demand is based on the following: According to the

1997 Monitoring Report, 5.2 million customers

participated in Lifeline in 1996. Monitoring Report,

CC Docket No. 87–339, May 1997, pgs. 86–87, table

2.3. Assuming participation rates among existing

customers remain constant, low income support for

existing Lifeline participants will be $436 million

for the year. (5.2 million people times $7, which is

the maximum amount of federal support for Lifeline

subscribers in states that provide matching funds,

multiplied by 12 months). In the Universal Service

Order, the Commission estimated that, by extending

the low income support mechanism to nonparticipating states, approximately 1.9 million new

low-income consumers would become eligible for

the support mechanism. Universal Service Order,

12 FCC Rcd at 8966, n. 903. Assuming one-third of

eligible consumers participate in the support

mechanism and that non-participating states do not

provide matching funds, low income support for

new Lifeline participants will be $40 million for the

year. (627,000 people (.33 x 1.9 million people) x

$5.25 (the maximum amount of federal support for

Lifeline subscribers in states that do not provide

matching funds) x 12 months). We have assumed

a one-third participation rate because the

participation rate for Washington D.C.’s low income

program is 32.3 percent. Chesapeake and Potomac

Tel. Co., Formal Case No. 850, Order No. 9927, page

166 (rel. Jan. 29, 1992). In the Universal Service

Order, the Commission estimated that annual

funding for LinkUp will increase to $23.6 million.

Universal Service Order, 12 FCC Rcd at 8966, n.

903. Thus, the projection of annual low income

demand is approximately $500 million. ($436

million plus $40 million plus $23.6 million).

16 The Rural Health Care Corporation may collect

up to $25 million in the first quarter of 1998. Third

Order on Reconsideration at para. 4.

17Changes to the Board of Directors of the

National Exchange Carrier Association, Inc.,

Federal-State Joint Board on Universal Service,

Second Order on Reconsideration in CC Docket 97–

21, CC Docket Nos. 97–21, 96–45, FCC 97–400 (rel.

Nov. 26, 1997).

18 In calculating interest income, USAC, Schools

and Libraries Corporation, and Rural Health Care

Corporation assumed payments for the entire

quarter would arrive on January 1, 1998. USAC

assumed the first payments for the high cost and

low income support mechanisms would be

distributed at the end of February. Schools and

Libraries Corporation and Rural Health Care

Corporation assumed that the first payments for the

schools, libraries, and rural health care support

mechanisms would be distributed 40 days after

January 1, 1998.

19Schools and Libraries Corporation and Health

Care Corporation Adopt Length of Filing Windows,

Public Notice, DA 97–2349 (rel. Nov. 6, 1997). See

also 47 CFR 69.616, 69.618(a)(7), 69.619(a)(7)

(instructing the Schools and Libraries and Rural

Health Care Corporations to authorize USAC to

submit payments within 20 days of the receipt of

requisite forms and instructing USAC to distribute

payments within 20 days of receiving

authorization). We anticipate that the window

period for Schools and Libraries Corporation and

Rural Health Care Corporation will not begin before

the second week in January 1998, funds will not be

distributed until after the 75-day window period

has closed, and approximately 40 days have passed

(20 days for submission of payments, 20 days to

distribute payments, pursuant to 47 CFR 69.616,

69.618(a)(7), 69.619(a)(7)). Thus, payments for the

schools and libraries and rural health care support

mechanisms will not be distributed until May 1998.

20Administrative expenses appear to be high

relative to projected quarterly demand, because

start-up costs have been allocated to the first

quarter. We anticipate that administrative expenses

will total less than two percent of annual program

costs.

approves revised universal service

contribution factors for the first quarter

of 1998.

The Commission concluded in the

Third Order on Reconsideration in CC

Docket 96–45 that it should not impose

unnecessary financial burdens on

service provider contributors to

universal service by collecting funds

that exceed demand. Accordingly, the

Bureau has reviewed all of the

administrative corporations’ projections

and has determined that the estimated

demand for the low income support

mechanism appears to be too high.

Based on our analysis, we project that

annual demand for the low income

support mechanism should be

approximately $500 million.15a This

annual figure of $500 million yields a

quarterly demand projection of $125

million, instead of the $136.3 million

projected by USAC. Therefore, we find

that the first quarter projection of

demand for the low income support

mechanism should be $125 million.

The Bureau also adjusts the first

quarter total program costs for the rural

health care support mechanism,

consistent with the Third Order on

Reconsideration in CC Docket 96–45,

from $100 million to $25 million.16

On November 26, 1997, the

Commission released the Second Order

on Reconsideration in CC Docket No.

96–45, which authorized the

Administrator to bill contributors and

collect contributions on a monthly,

rather than a quarterly basis.17 That

Order will reduce the interest income

for the first quarter of 1998.18 The

amount of interest earned for the high

cost and low income support

mechanisms decreased because

contributions will be collected on a

monthly, as opposed to quarterly, basis,

while support will continue to be

distributed on a monthly basis. As a

result of the 75-day window filing

period, initial support for the schools

and libraries and rural health care

support mechanisms will be distributed

in the second quarter.19 The amount of

interest earned for the schools and

libraries and rural health care support

mechanisms decreased slightly.

Accordingly, we have adjusted the

projected amount of interest income.

Therefore, first quarter projections of

demand and administrative expenses

are as follows (revised figures are in

bold):20

[In millions of dollars]

Program Program

demand

Administrative expenses

Interest

income

Total program costs

Schools and Libraries ....................................................................................................... 299.3 2.7 (2.0) 300.0

Rural Health Care ............................................................................................................. 23.0 202.2 (0.2) 25.0

Subtotal ..................................................................................................................... 322.3 4.9 (2.2) 325.0

High Cost .......................................................................................................................... 434.0 1.1 (1.0) 434.1

Low Income ...................................................................................................................... 125.0 0.6 (0.3) 125.3

Subtotal ..................................................................................................................... 559.0 1.7 (1.3) 559.4

Total ........................................................................................................................... 881.3 6.6 (3.5) 884.4
3894 Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 / Notices

21Letter from William Stern, NECA to Secretary,

FCC, dated November 13, 1997.

22Letter from John A. Ricker, NECA to Universal

Service Branch, dated November 10, 1997.

23The Commission estimates that carrier-tocarrier uncollectible rates are 0.2 percent. This

estimate was calculated using 1996 ARMIS data.

(1996 ARMIS 4301, Traffic Sensitive Total

Uncollectibles (Column R, Row 1060) divided by

Traffic Sensitive Total Revenues (Column R, Row

1090)).

24See also Letter from Rick D. Bailey, AT&T, to

Magalie Roman Salas, FCC, dated November 19,

1997 at page 4.

Based on information contained in the

Universal Service Worksheets, FCC

Form 457, USAC submitted the

following information regarding enduser telecommunications revenues on

November 13, 1997:

Total Interstate, Intrastate, and

International End-User

Telecommunications Revenues from

January 1, 1997–June 30, 1997: $89.827

billion.

Total Interstate and International EndUser Telecommunications Revenues

from January 1, 1997–June 30, 1997:

$35.001 billion.21

USAC recommended that, in

calculating the contribution bases, the

Commission adjust end-user

telecommunications revenues

downward to account for possible

uncollectible contributions and possible

errors in the projections of demand and

administrative expense. The proposed

contribution factors set forth in the

November 13, 1997 Public Notice thus

were based on USAC’s recommended

contribution bases.22 The revised

contribution factors set forth below,

however, are based on contribution

bases that include no adjustments for

uncollectibles or errors in projection.

Based on the low level of carrier-tocarrier uncollectibles for access

charges,23 we have concluded that

projected levels of uncollectible

contributions should be minimal.

Furthermore, given the quarterly

evaluation of demand, we find that we

do not need to take into account

possible errors in projections when

setting the contribution factors. Any

projection-related errors can be

corrected in subsequent quarters.24

Finally, we note that the contribution

factors proposed by USAC and set forth

in the Public Notice were derived by

dividing quarterly total program costs

by revenues for a six-month period.

Although these factors, if approved,

would have been used to collect funds

for the first quarter, they would have

been applied to the six-month revenues

reported on individual contributor’s

Universal Service Worksheets. To obtain

contribution factors that will be applied

to revenues that approximate first

quarter revenues, the revised

contribution factors set forth below are

based on contribution bases that are

divided by two. This results in a more

accurate portrayal of the contribution

factors but does not change the amounts

collected.

Based on the figures submitted by

USAC, Schools and Libraries

Corporation, and Rural Health Care

Corporation, and revised as set forth

above, the approved contribution factors

for the first quarter of 1998 are as

follows:

Contribution factor for the schools

and libraries and rural health care

support mechanisms:

Total Program Costs / Contribution

Base (Interstate, International, and

Intrastate) = $0.325 billion / ($89.827

billion / 2) = 0.0072.

Contribution factor for the high cost

and low income support mechanisms:

Total Program Costs / Contribution

Base (Interstate and International) =

$0.559 billion / ($35.001 billion / 2) =

0.0319.

These factors are the approved first

quarter 1998 universal service

contribution factors. To calculate

contributions, USAC shall multiply

these factors by one half of contributors’

end-user telecommunications revenues

for January 1, 1997 through June 30,

1997, as reported on Universal Service

Worksheets. USAC will bill and collect

those contributions on a monthly basis.

For further information, contact Diane

Law, Universal Service Branch,

Accounting and Audits Division,

Common Carrier Bureau, at (202) 418–

7382.

Federal Communications Commission.

Timothy A. Peterson,

Deputy Division Chief, Common Carrier

Bureau.

[FR Doc. 98–1834 Filed 1–26–98; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

Meeting of the Advisory Committee for

the 1999/2000 World

Radiocommunication Conference

(WRC–99 Advisory Committee)

AGENCY: Federal Communications

Commission.

ACTION: Notice.

SUMMARY: In accordance with the

Federal Advisory Committee Act, this

notice advises interested persons that

the next meeting of the WRC–99

Advisory Committee will be held on

Tuesday, February 10, 1998, at the

Federal Communications Commission.

The purpose of the meeting is to begin

preparations for the 1999 World

Radiocommunication Conference.

DATES: February 10, 1998; 9:30 a.m.–

12:00 p.m.

ADDRESSES: Federal Communications

Commission, 1919 M Street, N.W.,

Room 856, Washington D.C. 20554.

FOR FURTHER INFORMATION CONTACT:

Damon C. Ladson, FCC International

Bureau, Planning and Negotiations

Division, at (202) 418–0420.

SUPPLEMENTARY INFORMATION: The

Federal Communications Commission

(FCC) established the WRC–99 Advisory

Committee to provide advice, technical

support and recommendations relating

to the preparation of United States

proposals and positions for the 1999

World Radiocommunication Conference

(WRC–99). In accordance with the

Federal Advisory Committee Act, Public

Law 92–463, as amended, this notice

advises interested persons of the initial

meeting of the WRC–99 Advisory

Committee. The WRC–99 Advisory

Committee has an open membership.

All interested parties are invited to

participate in the Advisory Committee

and to attend its meetings. The

proposed agenda for the first meeting is

as follows:

Agenda

First Meeting of the WRC–99 Advisory

Committee, Federal Communications

Commission, 1919 M Street, N.W.,

Room 856, Washington, D.C. 20554

February 10, 1998; 9:30 a.m.–12:00 p.m.

1. Opening Remarks

2. Approval of Agenda

3. Report on FCC Reorganization of

WRC Preparatory Process

4. Suggestions for Improving the

Preparatory Process

5. Report on Recent ITU-R meetings

6. Advisory Committee Structure and

Meeting Schedule

7. Other Business

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

[FR Doc. 98–1836 Filed 1–26–98; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

[CC Docket No. 92–237; DA 98–110]

Conference Call Meeting of the North

American Numbering Council

AGENCY: Federal Communications

Commission.

ACTION: Notice.